ITN for Investment Advisory Services

Wright State University Finance & Audit Committee Presentation

JP Cavaliere 610.676.2614 [email protected]

MJ Bobyock, CFA 610.676.1767 [email protected]

September 26th, 2014

 Introduction of SEI and team

 Discretionary Model

 WSU: Objectives, Observations and initial recommendations

 Process, Timeline and Next Steps

 IPS Changes

 Comparing the Portfolios – Old vs. New

 Appendix:

 Additional information on SEI

 Capital Finance Analysis

 Team Biographies

 Disclosures

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 2 SEI overview: 20 years of taking accountability for client investment results

• Publicly held firm (NASDAQ: SEIC)

• Global company with U.S. headquarters in Oaks, Pennsylvania

• Over $74 billion in institutional assets under management1 • A financially sound organization2 • Serving 150 nonprofit clients worldwide – Repurchased more than $933 million in SEI stock since January 2008 – More than $532 million of unrestricted cash on hand

• Providing discretionary asset management and investment outsourcing solutions for nonprofit clients for more than 20 years

• Significant annual investment in research tools and technology for investment management

• Dedicated group of market specialists and investment experts working with nonprofit clients 1As of June 30, 2014. $249 billion in firm wide assets under management. 2As of June 30, 2014. Source: SEI second quarter earnings release, July 23, 2014.

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 3 Representative SEI clients

Non-Profit/Healthcare Corporate Capital Health System (Trenton, NJ) Boston Mutual Life Insurance Co. (Boston, MA) Central Connecticut State University (New Britain, CT) Brinks Company (Richmond, VA) Children’s Mercy Hospital (Kansas City, MO) Clarks Companies, N.A. (Boston, MA) College of Central Florida Foundation, Inc. (Ocala, FL) Cliffs Natural Resources (Cleveland, OH) Columbus Jewish Foundation (Columbus, OH) Carmeuse North America Group (Pittsburgh, PA) Cooper Health System (Cherry Hill, NJ) Covidien (Mansfield, MA) Des Moines University (Des Moines, IA) Dayton Power & Light Company (Dayton, OH) Fresno Regional Community Foundation (Fresno, CA) Ecolab, Inc. (St. Paul, MN) La Salle University (Philadelphia, PA) Givaudan Corporation (Cincinnati, OH) Lee Memorial Health System (Cape Coral, FL) The J.M. Smucker Company (Orrville, OH) Marvin M. Schwan Charitable Fnd (Earth City, MO) Joy Global, Inc. (Milwaukee, WI) Reinhardt University (Waleska, GA ) Lafarge N.A. (Chicago, IL) Southwest Florida Community Fnd (Fort Myers, FL) LVMH Moet Hennessy Louis Vuitton (New York, NY) Springpoint Senior Living (Princeton, NJ) Mitsubishi Motors North America, Inc. (Cypress, CA) Wright State University Foundation (Dayton, OH) Panasonic Corporation (Secaucus, NJ)

Representative clients reflect a partial list of US institutional clients selected from SEI’s complete client roster with assets in excess of $25 million that have provided SEI with permission to use their names in marketing materials. The inclusion of particular clients on this list does not constitute an endorsement or recommendation of SEI’s products or services by such clients. Client list as of June 30, 2014.

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 4 Your SEI team of experts develops and executes an investment strategy based on organizational goals

Client Portfolio Manager Advisory Expert

Accountable for client investment strategy Responsible for creating asset allocation tied and implementation to client’s goals and mitigating risk • Regular portfolio and manager reviews • Industry trends and best practices • Strategy to meet alpha objectives and portfolio goals • Spending policy analysis • Active point of view on global investment markets, asset • Capital Market Assumptions classes, managers and investment vehicles • Asset Allocation recommendations • Risk management • Investment Policy formulation • Strategy and investment oversight • Portfolio modeling and stress testing MJ Bobyock, JP Cavaliere • Collaborates with asset allocation and manager research specialists CFA

MANAGER RESEARCH & ASSET ALLOCATION / CUSTODY / OPERATIONS SELECTION RISK MANAGEMENT

• Portfolio construction • Capital market assumptions • custody services • Alpha source identification • Portfolio modeling • Integrated technology / • Equity, fixed income, alternative • Stress testing reporting platform investments manager selection • Active investment management • Securities trading • Dynamic asset allocation • Alpha source and tracking error • Ongoing manager oversight analysis

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 5 Flexible levels of delegation

• There are several levels of investment management delegation available Range of Discretionary Delegation Models • The first level offers discretion for manager-related decisions, such as SEI Initial Investment hiring and replacement Policy • Full discretion would include discretion Active Asset over manager-related decisions and Allocation Manager Oversight ongoing asset allocation changes in (Hiring/Replacement)

accordance with bands pre-established Asset Allocation in the Investment Policy Statement Studies • SEI offers flexible levels of discretion Manager Searches Traditional Discretion Over based on the needs and goals of your Full Discretion organization Consulting Manager Selection

Client/Committee Decision Provider Discretion

Potential Benefits:

- Opportunistic investments to take advantage of short-term market opportunities - Ability to mitigate various risks to the portfolio - Efficiently implement SEI’s point of view

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 6 Wright State University Investment Fund Objectives

Investment Objectives – seek to maximize long-term total returns consistent with prudent levels of risk while maintaining compliance with the State of Ohio Guidelines

The Wright State University Investment Fund seeks to accomplish this investment objective through decisions that are in the best of interest of the Fund. Items to consider when evaluating investments:

1) Safety: investments should be made to preserve capital in the overall portfolio over time

2) Liquidity: maintain the ability to sell investments on short notice to raise cash needed to meet the University’s operating requirements

3) Return on Investments: the overall portfolio should be constructed to achieve the highest level of total return with a prudent amount of market risk

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 7 Process, Timeline and Next Steps

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 8 November 2013 –Cross functional review team formed ITN for December 16, 2013 –ITN released Investment February 3, 2014 –Core team narrowed pool Advisory Services from 17 to 9 firms for further consideration February 5, 2014 –Full committee selected 5 firms for presentations

April ‐ May 2014 –Contract negotiations held with SEI

March 5‐10, 2013 – Finalist firms presented to review committee March 17, 2014 –SEI selected to begin contract negotiations May 28, 2014 – Contracts with SEI executed

May 29 – June 30, 2014 –Conference calls held to discuss transition of assets July ‐ October 2014 –Conference calls held to develop metrics, discuss IPS revisions and transition to OCIO model, discuss diversifying strategies, transition portfolio assets, develop Board presentation October 10, 2014 –Board considers approval of revised IPS

October – December 2014 – Educational sessions on Structured Credit and Private Real Estate

By January 2015 –SEI reallocates portfolio in accordance with updated IPS IPS Changes

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 10 Wright State University Investment Fund IPS Changes

 Wholesale changes within the WSU Investment Fund IPS to correspond with the new Outsource CIO/Fiduciary Manager model that the University has adopted

Previous IPS Recommended IPS Definitions, roles and responsibilities all written for Broader responsibilities for various university work with a traditional consultant parties and more of an emphasis put on the Fiduciary Manager for manager selection, rebalancing, etc Removal of any reference to investment consultant Fiduciary Manager reports to committees and and investment manager duties board on changes to investment managers and asset class weights Asset class targets were for Diversified Portfolio Combined targets/ranges to each WSU pool and only look at a Total Combined level with recommended targets and ranges Broad asset classes: Global Equity, Global Fixed Broad asset classes: Global Equity, Global Fixed Income, Real Assets and Diversifying Strategies Income, Inflation Hedge Strategies and Alternatives Definition of investments and restrictions were built Broader explanations of investments in each asset toward the traditional consultant model class; kept restrictions in place where appropriate

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 11 Wright State University Investment Fund IPS Changes Original IPS Allocation and Ranges for Diversified Pool Recommended IPS Allocation for Diversified Pool

Asset Class Target % Range Asset Class Target %

Global Equity 60% 50 – 75% Global Equity 53% U.S. Large/Mid Cap 25% US Large Cap (S&P 500 Index) 10% U.S. Small Cap 10% US Managed Volatility 12% International Equities 20% U.S. Small/Mid Cap 3% Developed Large Cap 12% US Small Cap 3% Developed Small Cap 3% World ex‐US Equities 15% Emerging Markets 5% Emerging Markets Equity 4% Private Equity 5% Dynamic Asset Allocation 6% Global Fixed Income 20% 10 – 30% Global Fixed Income 20% Core / Core Plus Fixed Income 17% Investment Grade Bonds 10% TIPS 3% High Yield 6% International Bonds 4% Real Assets 15% 0 – 25% Inflation Hedge 7% Natural Resources (Commodities / MLPs / Private 10% Multi‐Asset Real Return 7% Energy) Real Estate (Public/Private) 5% Alternatives 20% Diversifying Strategies 5% 0 – 10% Hedge Funds 7% Structured Credit 6% Private Real Estate 3% Private Equity 4% Alternative recommendations will be funded on December 31, 2014. This provides time for members of the Finance & Audit Committee and the WSU Management team to feel comfortable with additional education on these strategies.

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 12 Wright State University Investment Fund IPS Changes – Addition of the Total Portfolio Allocation

Recommended IPS Allocation and Ranges for the Total Portfolio Asset Class Target % Target Range % Global Equity 35% 25 ‐ 55% US Large Cap (S&P 500 Index) 6% 0 ‐ 25% US Managed Volatility 8% 0 ‐ 25% U.S. Small/Mid Cap 2% 0 ‐ 15% US Small Cap 2% 0 ‐ 15% World ex‐US Equities 10% 0 ‐ 25% Emerging Markets 3% 0 ‐ 10% Dynamic Asset Allocation 4% 0 ‐ 10% Global Fixed Income 47% 25 ‐ 55% Investment Grade Bonds 28% 0 ‐ 30% High Yield 3% 0 ‐15% Emerging Markets Debt 4% 0 ‐15% Cash and Cash Equivalents 12% 0 ‐ 10% Inflation Hedge 5% 0 ‐ 15% Multi‐Asset Real Return 5% 0 ‐15% Alternatives 13% 0 ‐ 20% Hedge Funds 4% 0 ‐15% Structured Credit 4% 0 ‐10% Private Real Estate 2% 0 ‐15% Private Equity 3% 0 ‐10% Alternative recommendations will be funded on December 31, 2014. This provides time for members of the Finance & Audit Committee and the WSU Management team to feel comfortable with additional education on these strategies.

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 13 Comparing the Portfolios

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 14 Total Enterprise Approach to Custom Investment Allocation

Unrestricted Cash & Investments Capital Structure • Ability to meet short term operating needs • Credit rating implications/Moody’s ratings • Organization strategies and objectives • Interest rate sensitivity to floating liabilities • Working capital requirements • Risk tolerance of organization • Possible spending/draw down Unrestricted Cash • Capital Markets considerations requirements & Investments • Availability of credit facilities • Asset allocations that allow one to adapt to • Existing debt policy: fixed/floating changing market conditions University • Restricted Assets • Need for liquidity and compliance with State law Enterprise Management

Strategic and Capital Capital Structure Planning

It is critical to understand how these various components interact and Strategic and Capital Planning influence organizational • Ability to fund strategies and objectives • Enrollment/Tuition Considerations objectives and each other • Competitive enhancements • Alternative sources of revenue • Expense optimization • Existing credit rating and ability to access capital markets • Foundation contribution to University operations

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 15 Wright State University Investment Fund Observations & Initial Recommendations

Observations:  Investment income budget approximately $8.4 million  Tuition and related increases low relative to state peers  Ohio state appropriations contingent upon degree and course completion starting 2014 . unknown impact to non- operating revenue . tuition and state appropriations historically over 50% of revenue source for programs . No longer reliant on federal loan subsidies  Debt considerations . Recent debt issued earned A1 bond rating from Moody’s . No immediate plans for increased debt  Strategic initiatives . Increase innovative research initiatives – student engagement; grant potential . Graduation and career placement Recommendations: 1. Enhance return and income expectation of Liquidity pool 2. Increase income potential in Diversified Pool while reducing equity risk and adding managed volatility 3. Stress test allocations to see good, average and bad returns impact on financial metrics 4.Reduce slightly overall standard deviation while maintaining return target by introducing two alternatives

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 16 Wright State University – prior to 7/1/14 transition (December 31, 2013 allocation)

Total Combined Average Liquidity Pool Cash Pool Total Combined Asset Class Diversified Pool Actual Portfolio (9% Cash (2/3 active) (based on average) Target Portfolio Pool of Total Portfolio) Russell 1000 Large Cap Index 25.0 - - 16.0 19.0 Mid Cap Passive Equity 5.0 - - 3.0 4.0 US Small Cap Equity 13.0 - - 8.0 10.0 International Equity 15.0 - - 10.0 11.0 Emerging Markets Equity 4.0 - - 2.0 3.0 Total Equity 62.0 - - 39.0 47.0 US High Yield 1.0 - - 1.0 1.0 Emerging Markets Debt 3.0 - - 2.0 2.0 Core Fixed Income 12.0 - - 8.0 9.0 International Fixed Income 3.0 - - 2.0 2.0 Short Term Bond - 67.0 31.0 16.0 13.0 Short Term Bond Passive - 33.0 - 5.0 5.0 TIPs 3.0 - - 2.0 2.0 Cash - - 69.0 14.0 6.0 Total Fixed Income 22.0 100.0 100.0 50.0 40.0 Commodities 4.0 - - 3.0 3.0 Total Inflation Hedge/Real Assets 4.0 - - 3.0 3.0 Private Equity 1.0 - - 1.0 1.0 MLPs 6.0 - - 4.0 5.0 Hedge 5.0 - - 3.0 4.0 Total Alternatives/Other 12.0 - - 8.0 10.0 Net Expected Return 7.2% 2.2% 2.1% 5.6% 6.2% Standard Deviation 15.1% 2.5% 1.1% 9.8% 11.7% Risk of Loss (5th percentile) -14.1% -1.5% 0.2% -8.8% -10.7% Sharpe Ratio 0.38 0.18 - 0.41 0.40

Source: SEI Capital Market Assumptions updated June 2014. Please see important disclosures at the beginning of this section and at the back of the presentation. Net of Fees

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 17 Wright State University – recommended portfolios

Total Combined Average Actual Cash Pool Total Combined Asset Class Diversified Pool Liquidity Pool Portfolio (9% Cash Pool of Total (based on average) Target Portfolio Portfolio) US Managed Volatility 12.0 - - 8.0 9.0 S&P 500 Index 10.0 - - 6.0 8.0 US Small/Mid Cap Equity Index 3.0 - - 2.0 2.0 US Small Cap Equity 3.0 - - 2.0 2.0 World Equity Ex-US 15.0 - - 10.0 11.0 Emerging Markets Equity 4.0 - - 3.0 3.0 Dynamic Asset Allocation 6.0 - - 4.0 5.0 Total Equity 53.0 - - 35.0 40.0 US High Yield 4.0 - - 3.0 3.0 Emerging Markets Debt 6.0 - - 4.0 5.0 Core Fixed Income 10.0 - - 5.0 8.0 Limited Duration Fixed Income - 60.0 - 9.0 9.0 Short Term Corporate Fixed Income - 40.0 - 6.0 6.0 Short Term Bond - - 31.0 6.0 3.0 Cash - - 69.0 14.0 6.0 Total Fixed Income 20.0 100.0 100.0 47.0 40.0 Multi-Asset Real Return 7.0 - - 5.0 5.0 Total Inflation Hedge/Real Assets 7.0 - - 5.0 5.0 Moderate Volatility Hedge 7.0 - - 4.0 5.0 Private Real Estate 3.0 - - 2.0 2.0 Structured Credit 6.0 - - 4.0 5.0 Private Equity 4.0 - - 3.0 3.0 Total Alternatives/Other 20.0 - - 13.0 15.0 Net Expected Return 7.5% 2.5% 2.1% 5.8% 6.4% Standard Deviation 14.6% 2.9% 1.1% 9.8% 11.2% Risk of Loss (5th percentile) -13.7% -2.3% 0.0% -9.1% -10.4% Sharpe Ratio 0.43 0.26 - 0.45 0.45

Source: SEI Capital Market Assumptions updated June 2014. Please see important disclosures at the beginning of this section and at the back of the presentation. Net of Fees (Total Portfolio fees are SEI fees only – excludes outside cash held)

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 18 VAR (Value at Risk) Analysis – July 31, 2014

Undiversified Risk Diversified Risk Inflation Alternatives FX Interest Rates Spread Equity

$- $1,000,000.00 $2,000,000.00 $3,000,000.00 $4,000,000.00 $5,000,000.00 $6,000,000.00 $7,000,000.00 $8,000,000.00

$5,000,000.00 $- $(5,000,000.00) $(10,000,000.00) $(15,000,000.00) $(20,000,000.00) $(25,000,000.00) 1% 10 Yr Treas Hypothetical Tech Bubble Fed Tapering -10% Equity VIX jumps to 35 2008 Global Crisis Inflation

Total Combined Target Portfolio Total Combined Average Actual Portfolio (9% Cash Pool of Total Portfolio)

Source: Blackrock Portfolio Risk Tools, SEI Investment Management Unit Risk” defined as standard deviation

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 19 Liquidity analysis for recommended portfolios

120%

100%

80%

60%

40%

20%

0% Diversified Pool Liquidity Pool Cash Pool Total Actual Target Portfolio Total Combined Target Portfolio

Daily Liquidity Quarterly Liquidity Two Year Lock Up Greater than Two Year Lock Up

Total Target Total Actual Diversified Pool Liquidity Pool Cash Pool Combined Portfolio Combined Daily Liquidity 80% 100% 100% 87% 85% Quarterly Liquidity 3% 0% 0% 2% 2% Two Year Lock Up 13% 0% 0% 8% 10% Greater than Two Year 4% 0% 0% 3% 3% Lock Up

Source: SEI

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 20 Credit quality breakdown for current portfolios as a percentage of the portfolio

Diversified Pool Liquidity Pool Cash Pool Total Target Portfolio Total Actual Portfolio

Below IG 3.80% Below BBB IG 9.80% 4% BBB Below Below Below 9.20% IG IG IG AAA A 8.90% 8.60% AAA 5.4% 6.4% AAA AAA 10.80 15.40 20.00 A 53.80 % % % 23.00 % AA BBB % 7.60% AAA 9.80% BBB AA 68.40 9.10% BBB % AA 0.4% AA 5.4% A AA A A 1.50% 2.00% 2.4% 9.60% 6.30% 5.40%

As of 6/30/14 Diversified Pool Liquidity Pool Cash Pool Total Target Portfolio Total Actual Portfolio

AAA 6.4% 53.8% 68.4% 20.0% 15.4% AA 0.4% 9.6% 7.6% 2.0% 1.5% A 2.4% 23.0% 10.8% 6.3% 5.4% BBB 5.4% 9.8% 9.2% 9.8% 9.1% Below IG 5.4% 3.8% 4% 8.9% 8.6% Total Fixed Income 20% 100% 100% 47% 40% Allocation

Source: Blackrock, SEI.

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 21 Investment allocation strategy determined by institutional risk tolerance in financial operations and portfolio scenarios

1 Year Financial Projections *

Prior to Transition Portfolio Proposed Portfolio WSU Projection Confidence Interval** Based on budget 95th 50th 5th 95th 50th 5th (Downside Risk Year 10) projections Expendable Net Assets (in millions) $201.5 $175.8 $153.6 $202.1 $176.1 $153.9 $167.5 Operating Expense (in millions) $360.7 $360.7 $360.7 $360.7 $360.7 $360.7 $360.7 Expendable Net Assets to Operating Expense 0.559 0.487 0.426 0.560 0.488 0.427 0.464 Primary Reserve Score 544544 4 Expendable Net Assets (in millions) $201.5 $175.8 $153.6 $202.1 $176.1 $153.9 $167.5 Plant Debt (in millions) $106.9 $106.9 $106.9 $106.9 $106.9 $106.9 $106.9 Expendable Net Assets to Plant Debt 1.884 1.644 1.436 1.889 1.647 1.439 1.566 Viability Score 444444 4 Change in Total Assets (in millions) $20.7 -$5.0 -$27.1 $21.3 -$4.7 -$26.9 -$1.6 Revenues, Operating and Non-Operating (in $381.4 $355.8 $333.6 $382.0 $356.1 $333.9 $359.2 millions) Change in Total Assets to Revenues 0.054 -0.014 -0.081 0.056 -0.013 -0.081 -0.004 Net Income Score 51 - 51- 1 Senate Bill 6 Ratio 4.70 3.40 3.20 4.70 3.40 3.20 3.40

** 95th percentile is the good scenario, 50th percentile is the average scenario and 5th percentile is the poor scenario Source: SEI Capital Market Assumptions updated June 2014. Please see important disclosures at the beginning of this section and at the back of the presentation. Financial Statements for Wright State University for June 30, 2013. Gross of Fees

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 22 Summary of SEI as Fiduciary Manager

 More holistic approach to managing investment assets in conjunction with strategic and financial objectives

 Stress testing financial ratio metrics using good, average, and poor outcomes showed consistent results with desired ratio goals

 Recommended portfolios achieve return target with reduced volatility and added diversification benefits while maintaining appropriate liquidity

 Utilizing SEI’s point of view in the markets and adjusting the portfolio(s) accordingly to take advantage of opportunities or reduce risks when appropriate.

 Eliminate the time it takes for committees to approve or terminate manager relationships

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 23 Appendix Additional information on SEI Capital Finance Analysis Team Biographies Capital Market Assumptions Disclosures FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 24 Track record of active decision making

Immunized portfolio PORTFOLIO MANAGEMENT DECISIONS Underweight small Added structured credit; spending with laddered cap equity, overweight reduced fixed income allocation bond portfolios Added absolute return large cap equity Overweight high yield, underweight Added Dynamic Asset emerging markets debt Allocation Portfolio Added managed volatility Suspended Increased credit rebalancing exposure; lowered Added allocation to event driven Launched multi-asset duration strategy within hedge fund allocations real return strategy 2008 2009 2010 AIG Collapse

Bear Stearns Tarp Collapse Enacted Market Recovery Lehman Brothers Collapse BOA Rescues Merrill Lynch Market Bottom

MANAGER CHANGES Coordinated with emerging markets debt managers to go off-benchmark Large cap equity reduces exposure to quantitative approach and gain exposures to corporates Replaced emerging in anticipation of increased market volatility and local currency markets equity manager Terminated three small cap managers and reallocated assets to create more market- to higher quality and lower risk managers Added direct exposure to collateralized loan cap flexibility obligations in high yield to exploit market dislocation and outsized return opportunities This information is presented to illustrate SIMC’s approach to implementing active asset allocation investment strategy adjustments over various market cycles. It does not reflect the recommendation of any particular mutual fund, investment manager or other investment product and is not a complete list of the asset allocation investment strategy adjustments made over the time period referenced. Additional information concerning SIMC’s asset allocation and investment strategy adjustments over the last year is available upon request. Past performance is not indicative of future results, and it should not be assumed that future recommendations will be profitable or will equal the performance of past recommendations.

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 25 Track record of active decision making

Integrated inflation-protection strategy PORTFOLIO MANAGEMENT DECISIONS that included commodity and real Active LDI strategies asset exposure in addition to TIPS Underweight U.S. equity, Overweight large cap equity reduced overweight to credit overweight high yield and and high yield, underweight Shortened Euro in DAA Added dedicated exposure emerging markets debt core fixed income and world to emerging markets equity equity ex U.S. Reallocated client’s Adjusted duration; risk-management Initiated Private added short duration strategies to incorporate Equity III Portfolio Added allocation to core property strategy shorter duration 2011 2012 2013 U.S. Fed U.S. Government Begins Taper Shutdown

U.S. Fiscal Cliff Agreement U.S. Fed ECB Intervention Quantitative Easing European Debt Crisis

Began actively managing client’s MANAGER CHANGES currency exposures in light of increased currency volatility Responded quickly (termination) to an Added REITS specialist in small cap Expanded Opportunistic Income emerging markets debt manager lift- mandate to account for anticipated out and other personnel departures Added micro-cap manager to gain rising interest rate environment exposure to securities under-followed by Added a commodity specialist in most SMID managers inflation-protection strategy to capture informational inefficiencies This information is presented to illustrate SIMC’s approach to implementing active asset allocation investment strategy adjustments over various market cycles. It does not reflect the recommendation of any particular mutual fund, investment manager or other investment product and is not a complete list of the asset allocation investment strategy adjustments made over the time period referenced. Additional information concerning SIMC’s asset allocation and investment strategy adjustments over the last year is available upon request. Past performance is not indicative of future results, and it should not be assumed that future recommendations will be profitable or will equal the performance of past recommendations.

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 26 Implementing the portfolio: Well resourced team with more than 20-year heritage of selecting institutional managers

An experienced team of investment professionals Investment disciplines • SEI has over 20 years of manager selection and portfolio • Manager selection and continuous oversight construction experience • Portfolio construction • Approximately 90 credentialed investment professionals • Risk management across the globe • Equities • More than 60 CFAs, MBAs, or other advanced designations • Fixed income • Alternative investments Accountable to clients • Dynamic asset allocation • Significant level of senior investment team equity in SEI • Compensation based on achieving performance within Global Locations specified risk parameters Ireland • No “pay to play” United Kingdom Canada The Netherlands Globally integrated team-based structure • Investment teams sharing best practices globally • Teams focused on research and portfolio strategy Hong Kong • Global investment strategy oversight by senior leaders United States United Arab Emirates

As of December 31, 2013. South Africa

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 27 SEI’s active investment philosophy: Four levels of value add

Active Asset Management 4 • Provide dynamic positioning of asset allocation seeking to enhance returns

Active Active Management of Manager Mix Management 3 of Manager • Provide dynamic positioning of manager mix to enhance returns Mix • Manage individual manager exposures to account for market cycles

Best of Breed Managers, Portfolio Construction & Oversight Best of Breed 2 Managers, Portfolio • Diversified exposure to the best managers through intensive Construction & research and multi-manager implementation Oversight • Portfolio construction process and risk management

Goals Based Asset Allocation 1 Goals Based Asset • Customized advice to create strategic asset allocation Allocation tied to organizational and plan goals

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 28 Client model focused on supporting good governance, sound decision making and achieving financial goals

Reporting Communication and Education

• Customized FMA reporting to evaluate • Client Resource Center website progress against goals • E-communications on primary research and • Timely, comprehensive performance reporting perspectives on industry trends • Quarterly investment review meetings • Education on new investment strategies • Economic and market updates with SEI’s point • Committee member survey, support and of view education • Legislative updates • CPA and CFP continuing education credit program • Client conferences and events

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 29 SEI is committed to our non-profit clients

Continued research / peer analysis through SEI sponsored Non-Profit Management Research Panel • Recent topics include spending policy, governance, positioning portfolio in rising rate environment SEI hosting Non-Profit Symposium for only non-profit clients in 2014 Active member / partcipant with highly respected industry groups: • Council on Foundations • National Association of College and University Business Officers (NACUBO) • Association of Governing Boards (AGB) of Universities and Colleges • Portfolio Whiteboard Project SEI Institutional Group’s contributed $1.08M back to client causes in 2012

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 30 How does SEI’s solution benefit the University?

Experienced • The largest provider of outsourced investment services* • 20 year track record Resources/Expertise • 300 professionals available to support the university's needs • Portfolio built for specific needs of university Customization • Asset allocation process customized • Ability to fully diversify across and within asset classes without Diversification size constraints • More than 35 manager mandates across public markets

Access • Bring institutional managers with high minimums and limited capacity to smaller asset pools

Active Point of View • Continual updates on current market opportunities and optimal positioning • Operationally streamlined with one contract Efficiency • Full audit support • Limited resources required • Across managers within the portfolio Transparency • Fully transparent fee structure

Pensions & Investments 2013. Largest outsourcer based on worldwide clients among investment outsourcing managers with over $50 billion in worldwide assets under management as of July 2013.

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 31 How do SEI clients benefit?

Track record of helping clients achieve goals • Time-tested delegation model provided to institutional clients since 1992 • Heritage of identifying top-tier independent institutional managers • Long-term track record of consistent investment results

Customized solutions focused on client needs • Open architecture program with broad array of asset classes and choice of delegation level • Custom asset allocation strategy with monitoring against goals • Nimble active decision making, improved risk management and stress testing

Team of experts and resources act as extension of your team • Expert resources in corporate finance, pension finance and investments • Access to research and educational materials on SEI’s Client Resource Center

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 32 Investment allocation strategy determined by institutional risk tolerance in financial operations and portfolio scenarios

1 Year Financial Projections *

Prior to Transition Portfolio Proposed Portfolio WSU Projection Confidence Interval** Based on budget 95th 50th 5th 95th 50th 5th (Downside Risk Year 10) projections Unrestricted Net Assets (in millions) $131.4 $113.0 $97.0 $131.8 $113.2 $97.3 $107.0 Operating Expense (in millions) $338.0 $338.0 $338.0 $338.0 $338.0 $338.0 $338.0 Unrestricted Financial Resources to Operating 0.39 0.33 0.29 0.39 0.33 0.29 0.32 Expense Unrestricted Net Assets (in millions) $131.4 $113.0 $97.0 $131.8 $113.2 $97.3 $107.0 Debt (in millions) $123.7 $123.7 $123.7 $123.7 $123.7 $123.7 $123.7 Unrestricted Financial Resources to Debt 1.06 0.91 0.78 1.07 0.92 0.79 0.86 Total Revenues (in millions) $381.4 $355.8 $333.6 $382.0 $356.1 $333.9 $359.2 Less Capital Grants (in millions) -$2.0 -$2.0 -$2.0 -$2.0 -$2.0 -$2.0 -$2.0 Total Operating Revenues (in millions) $379.4 $353.8 $331.4 $380.0 $354.1 $331.9 $357.2 Change in Unrestricted Net Assets -$3.9 -$3.4 -$2.9 -$3.9 -$3.4 -$2.9 -$3.2 Change in Unrestricted Net Position to Total -1.03 -0.95 -0.87 -1.03 -0.95 -0.87 -0.89 Operating Revenue WSU Financial Resources per FTE Actual 19,778 18,435 17,271 19,810 18,451 17,287 17,998 (Measure of Reserves)

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 33 Investment allocation strategy determined by institutional risk tolerance in financial operations and portfolio scenarios

10 Year Financial Projections *

Prior to Transition Portfolio Proposed Portfolio WSU Projection Confidence Interval** Based on budget 95th 50th 5th 95th 50th 5th (Downside Risk Year 10) projections Expendable Net Assets (in millions) $299.1 $259.8 $225.7 $300.0 $260.2 $226.2 $247.0 Operating Expense (in millions) $423.0 $423.0 $423.0 $423.0 $423.0 $423.0 $423.0 Expendable Net Assets to Operating Expense 0.707 0.614 0.534 0.709 0.615 0.535 0.584 Primary Reserve Score 555555 5 Expendable Net Assets (in millions) $299.1 $259.8 $225.7 $300.0 $260.2 $226.2 $247.0 Plant Debt (in millions) $47.5 $47.5 $47.5 $47.5 $47.5 $47.5 $47.5 Expendable Net Assets to Plant Debt 6.297 5.469 4.752 6.316 5.479 4.762 5.200 Viability Score 555555 5 Change in Total Assets (in millions) $35.0 -$4.4 -$38.4 $35.9 -$3.9 -$38.0 -$8.0 Revenues, Operating and Non-Operating (in $458.0 $418.7 $384.7 $459.0 $419.2 $385.1 $415.1 millions) Change in Total Assets to Revenues 0.076 -0.010 -0.100 0.078 -0.009 -0.099 -0.019 Net Income Score 51 - 51- 1 Senate Bill 6 Ratio 5.00 4.20 4.00 5.00 4.20 4.00 4.20

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 34 Investment allocation strategy determined by institutional risk tolerance in financial operations and portfolio scenarios

10 Year Financial Projections *

Prior to Transition Portfolio Proposed Portfolio WSU Projection Confidence Interval** Based on budget 95th 50th 5th 95th 50th 5th (Downside Risk Year 10) projections Unrestricted Net Assets (in millions) $280.8 $241.4 $207.4 $281.7 $241.9 $207.8 $228.6 Operating Expense (in millions) $395.8 $395.8 $395.8 $395.8 $395.8 $395.8 $395.8 Unrestricted Financial Resources to Operating 0.71 0.61 0.52 0.71 0.61 0.53 0.58 Expense Unrestricted Net Assets (in millions) $280.8 $241.4 $207.4 $281.7 $241.9 $207.8 $228.6 Debt (in millions) $121.3 $121.3 $121.3 $121.3 $121.3 $121.3 $121.3 Unrestricted Financial Resources to Debt 2.31 1.99 1.71 2.32 1.99 1.71 1.83 Total Revenues (in millions) $458.0 $418.7 $384.7 $459.0 $419.2 $385.1 $415.1 Less Capital Grants (in millions) -$5.7 -$5.7 -$5.7 -$5.7 -$5.7 -$5.7 -$5.7 Total Operating Revenues (in millions) $452.3 $413.0 $379.0 $453.3 $413.5 $379.4 $409.4 Change in Unrestricted Net Assets $8.3 $7.1 $6.1 $8.3 $7.2 $6.1 $6.8 Change in Unrestricted Net Position to Total 1.84 1.73 1.62 1.84 1.73 1.62 1.65 Operating Revenue WSU Financial Resources per FTE Actual 34,207 31,400 28,968 34,273 31,433 29,001 30,486 (Measure of Reserves)

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 35 How we create probability distributions and what they mean

• The probability distribution graphs and / or tables that follow are meant to provide an overview of the range of possible outcomes for a given variable (e.g., returns, pension contributions, expense) for a given asset allocation. Distribution of • The probability distributions are generated using SEI’s proprietary 95th percentile: Probable Outcomes modeling tool and simulated capital market behavior. 95% of outcomes are less than or equal to this value 22 95th Percentile • Capital market behavior is simulated for 1,000 possible scenarios based on 20 expected performance of each asset class and reflecting current economic 18 conditions. Capital market assumptions such as return, standard deviation 50th percentile: 16 75th Percentile and covariances are inputs into this process, combining with model 50% of outcomes are greater than 14 parameters to create market scenarios. this amount, and 50% are less 12 Median th • We use these 1,000 capital market scenarios to create 1,000 output 10 (50 Percentile)

scenarios for each variable being considered. $ Millions 8 25th Percentile • A 90% confidence interval should be interpreted as 90% of the projected 5th percentile: 6 output variables, falling between the 5% and 95% results, based on SEI 5% of outcomes are less than or 4 equal to this value Capital Market Assumptions. 2 5th Percentile • This projection is hypothetical in nature, does not reflect actual investment 0 results and is not a guarantee of future results.

About Capital Market Assumptions • SEI Investment Management Corporation develops forward-looking, long-term capital market assumptions for risk, return, and correlations for a variety of global asset classes, currencies, interest rates, and inflation. • These assumptions are created using a combination of historical analysis, future market environment expectations and by applying our own judgment. In certain cases, alpha and tracking error estimates for a particular asset class are also factored into the assumptions. • We believe this approach is less biased than using pure historical data, which may be affected by unsustainable trends or permanent material shifts in market conditions.

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 36 Annual expected return distribution – prior to transistion

Expected Returns

40%

34.6% 30% POTENTIAL OUTCOMES 27.0% Good Scenarios 20% 22.8% (95th Percentile)

17.7% 75th Percentile 14.3% 10% 12.3% Median (50th Percentile) 7.2% 6.3% 5.6% 6.2% 3.9% 4.0% th RETURN (%) RETURN 2.8% 25 Percentile 0% 2.2% 2.1%1.3% 0.5% 0.2% -0.8% -1.3% -2.4% -1.9% Poor Scenarios (5th Percentile) -10% -9.3% -11.2% -14.6% -20% Diversified Pool Liquidity Pool Cash Pool Total Combined Total Combined Target Portfolio Average Actual Portfolio

Source: SEI Capital Market Assumptions updated June 2014. Please see important disclosures at the beginning of this section and at the back of the presentation. Net of Fees

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 37 Annual expected return distribution for recommended portfolios

Expected Returns

40%

33.9% POTENTIAL 30% OUTCOMES

26.3% Good Scenarios 20% 23.2% (95th Percentile) th 17.6% 75 Percentile 14.1% 10% 12.6% Median (50th Percentile) 7.5% 7.4% 5.8% 6.4% 4.5% 4.3% 25th Percentile RETURN (%) RETURN 0% 2.5% 2.1%3.0% 0.5% 1.2% 0.0% -0.6% -0.8% -1.8% -2.3% Poor Scenarios (5th Percentile) -10% -9.1% -10.4% -13.7% -20% Diversified Pool Liquidity Pool Cash Pool Total Combined Total Combined Target Portfolio Average Actual Portfolio

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 38 SEI Capital Market Assumptions - short term - June 2014

Compound Return Risk Arithmetic Return Inflation: 2.00% US Small/Mid Cap Equity 8.89% 22.25% 11.37% Developed Markets Equities ex-US 8.65% 21.90% 11.05% Emerging Markets Equity 8.57% 30.27% 13.15% World Equity ex-US 8.38% 21.83% 10.76% US Private Equity 11.76% 20.11% 13.78% Private Equity 11.51% 18.89% 13.29% Core Fixed Income 3.70% 6.62% 3.92% U.S. High Yield 7.17% 12.75% 7.98% Emerging Markets Debt 8.24% 15.52% 9.44% Moderate Volatility Hedge 9.68% 16.61% 11.06% US Small Cap Equity 9.11% 23.44% 11.86% Short Term Corporate Fixed Income 2.96% 4.07% 3.05% US Managed Volatility Equity 7.49% 15.20% 8.65% Structured Credit 9.88% 21.00% 12.08% Master Limited Partnerships 6.96% 23.00% 9.61% Russell 1000 Large Cap Index 6.99% 19.00% 8.79% Cash Management Strategies (Prime) 2.07% 0.80% 2.07% Short-Duration Government 2.72% 2.61% 2.75% Short-Duration Government/Credit 2.51% 2.50% 2.54% Dynamic Asset Allocation 9.30% 19.92% 11.29% Multi-Asset 3.48% 8.85% 3.87% Private Real Estate 7.00% 19.26% 8.85% US Small/Mid Cap Equity Index 6.97% 21.88% 9.37% Commodities 3.93% 27.00% 7.57%

Please see important disclosures at the beginning of this section and at the back of the presentation.

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 39 SEI Capital Market Assumptions - short term - June 2014

Cash Short- Develop Moderat Short US Russell Manage Short- Duratio US US ed Emergi Emergi e US Term Manage Master 1000 ment Duratio n Dynami Small/M Small/MMarkets ng World US Core U.S. ng Volatilit Small Corpora d Structur Limited Large Strategi n Govern c Asset Private id Cap id Cap Equities Markets Equity Private Private Fixed High Markets y Cap te Fixed Volatilit ed Partner Cap es Govern ment/Cr Allocati Multi- Real Equity Commo Correlations Equity ex-US Equity ex-US Equity Equity Income Yield Debt Hedge Equity Income y Equity Credit ships Index (Prime) ment edit on Asset Estate Index dities US Small/Mid Cap Equity 1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 Developed Markets Equities 0.77 1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 ex-US Emerging Markets Equity 0.70 0.59 1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 World Equity ex-US 0.82 0.96 0.77 1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 US Private Equity 0.86 0.68 0.75 0.77 1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 Private Equity 0.88 0.87 0.70 0.87 0.83 1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 Core Fixed Income 0.20 0.23 0.00 0.19 0.10 0.28 1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 U.S. High Yield 0.60 0.50 0.60 0.56 0.70 0.75 0.40 1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 Emerging Markets Debt 0.60 0.54 0.80 0.66 0.60 0.65 0.50 0.75 1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 Moderate Volatility Hedge 0.83 0.63 0.87 0.76 0.80 0.80 0.10 0.75 0.70 1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 US Small Cap Equity 1.00 0.75 0.70 0.80 0.85 0.86 0.20 0.60 0.60 0.82 1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 Short Term Corporate Fixed 0.15 0.18 0.20 0.19 0.00 0.33 0.70 0.55 0.35 0.65 0.15 1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 Income US Managed Volatility Equity 0.93 0.82 0.75 0.88 0.85 0.88 0.30 0.60 0.65 0.80 0.90 0.20 1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 Structured Credit 0.50 0.41 0.45 0.47 0.60 0.61 0.00 0.80 0.50 0.75 0.50 0.50 0.50 1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 Master Limited Partnerships 0.35 0.27 0.40 0.33 0.40 0.42 0.15 0.50 0.40 0.75 0.35 0.45 0.35 0.50 1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 Russell 1000 Large Cap Index 0.93 0.82 0.75 0.88 0.85 0.88 0.30 0.60 0.65 0.80 0.90 0.20 1.00 0.50 0.35 1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 Cash Management Strategies 0.00 0.00 0.00 0.00 0.00 0.00 0.30 0.00 0.20 0.15 0.00 0.45 0.00 0.00 0.10 0.00 1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 (Prime) Short-Duration Government 0.10 0.14 0.00 0.14 0.00 0.23 0.92 0.50 0.45 0.10 0.05 0.70 0.25 -0.05 0.10 0.25 0.40 1.00 -1.00 -1.00 -1.00 -1.00 -1.00 -1.00 Short-Duration 0.15 0.18 0.00 0.14 0.00 0.28 0.92 0.55 0.50 0.10 0.10 0.70 0.30 0.00 0.15 0.30 0.45 0.97 1.00 -1.00 -1.00 -1.00 -1.00 -1.00 Government/Credit Dynamic Asset Allocation 0.93 0.82 0.75 0.88 0.85 0.88 0.30 0.60 0.65 0.80 0.90 0.20 1.00 0.50 0.35 1.00 0.00 0.25 0.30 1.00 -1.00 -1.00 -1.00 -1.00 Multi-Asset 0.40 0.38 0.50 0.43 0.35 0.44 0.35 0.45 0.50 0.50 0.40 0.40 0.40 0.40 0.35 0.40 0.05 0.30 0.30 0.40 1.00 -1.00 -1.00 -1.00 Private Real Estate 0.70 0.56 0.50 0.57 0.70 0.79 0.20 0.65 0.55 0.55 0.70 0.40 0.65 0.55 0.35 0.65 0.00 0.10 0.15 0.65 0.45 1.00 -1.00 -1.00 US Small/Mid Cap Equity 1.00 0.77 0.70 0.82 0.86 0.88 0.20 0.60 0.60 0.83 1.00 0.15 0.93 0.50 0.35 0.93 0.00 0.10 0.15 0.93 0.40 0.70 1.00 -1.00 Index Commodities 0.30 0.24 0.40 0.30 0.25 0.28 0.00 0.30 0.30 0.45 0.30 0.30 0.25 0.40 0.25 0.25 0.00 0.05 0.05 0.25 0.86 0.25 0.30 1.00 Please see important disclosures at the beginning of this section and at the back of the presentation.

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 40 Team Biographies

John Paul (JP) Cavaliere Client Portfolio Manager Institutional Group – Client Portfolio Management Team

John Paul Cavaliere serves as a Client Portfolio Manager where he is responsible for providing advisory services to institutional clients regarding investment and risk management strategies, portfolio construction and charitable planned giving solutions to corporate, nonprofit and healthcare clients.

In his preceding role, he served as a Senior Analyst for the Advice Team where he was responsible for providing advice to clients around issues such as investment strategy, risk management and portfolio construction and their impacts upon organizational decisions and objectives. Prior to that, he was a Client Investment Strategist in SEI’s Investment Management Unit, responsible for delivering SEI's investment philosophy, manager selection and asset allocation messaging to institutional clients. He was also involved with manager research, competitive analysis and performance positioning. John Paul began his career with SEI in 2004.

Additionally, he worked at BlackRock, where he was part of a team that was tasked with building and positioning separately managed account solutions for ultra high net worth clients.

Bachelor of Science in Business Administration with Finance and Economics concentrations, Drexel University Year started with SEI: 2004 Year started in investment industry: 2004 Previous employer: BlackRock

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 41 Team Biographies

Mary Jane (MJ) Bobyock, CFA Nonprofit Director Institutional Group - Advisory Team

MJ Bobyock serves as a Nonprofit Director for the Advisory Team where she is responsible for overseeing investment strategy development and advice for SEI's nonprofit and endowment clients. She joined SEI in June 2012 and has over 28 years of experience in the investments industry. She has extensive experience delivering custom solutions to institutional clients in the nonprofit community, including asset allocation analysis, spending studies, investment policy guidance, portfolio construction and reporting best practices. MJ regularly speaks at industry conferences and events and has been interviewed by publications such as The Chronicle of Philanthropy, Foundation & Endowment Intelligence, FundFire, Nonprofit News and The Nonprofit Times. She also currently serves on the Board for Settlement Music School.

Prior to joining SEI, MJ spent five years at Russell Investments as a Senior Client Executive, where she provided advisory and investment management services to nonprofit clients. Prior to that, she spent 17 years at Miller, Anderson & Sherrerd which was acquired during that time by Morgan Stanley Investment Management. While at Morgan Stanley, MJ served most recently as Vice President for the Institutional Client Coverage Group.

Bachelor of Science in Finance, Villanova University Master of Business Administration, Temple University Licensed and Registered Representative, FINRA Series 63 (SEI Investments Distribution Company, member FINRA) CFA Charterholder, CFA Institute Board Member, Settlement Music School

Year started with SEI: 2012 Year started in investment industry: 1984 Previous employers: Russell Investments, Morgan Stanley Investment Management, Miller, Anderson & Sherrerd

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 42 Important information

SIMC develops forward-looking, long-term capital market assumptions for risk, return, and correlations for a variety of global asset classes, interest rates, and inflation. These assumptions are created using a combination of historical analysis, current market environment assessment and by applying our own judgment. In certain cases, alpha and tracking error estimates for a particular asset class are also factored into the assumptions. We believe this approach is less biased than using pure historical data, which is often biased by a particular time period or event.

The asset class assumptions are aggregated into a diversified portfolio, so that each portfolio can then be simulated through time using a monte- carlo simulation approach. This approach enables us to develop scenarios across a wide variety of market environments so that we can educate our clients with regard to the potential impact of market variability over time. Ultimately, the value of these assumptions is not in their accuracy as point estimates, but in their ability to capture relevant relationships and changes in those relationships as a function of economic and market influences.

The projections or other scenarios in this presentation are purely hypothetical and do not represent all possible outcomes. They do not reflect actual investment results and are not guarantees of future results. All opinions and estimates provided herein, including forecast of returns, reflect our judgment on the date of this report and are subject to change without notice. These opinions and analyses involve a number of assumptions which may not prove valid. The performance numbers are not necessarily indicative of the results you would obtain as a client of SIMC.

We believe our approach enables our clients to make more informed decisions related to the selection of their investment strategies.

For more information on how SIMC develops capital market assumptions, please refer to the SEI paper entitled “Executive Summary: Developing Capital Market Assumptions for Asset Allocation Modeling.” If you would like further information on the actual assumptions utilized, you may request them from your SEI representative.

FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 43